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Australia\u2019s richest person, Gina Rinehart, is now the largest shareholder on lithium star Liontown Resources\u2019 register, having seized a controlling 19.9 per cent stake in just one month that gives her a commanding say over the miner\u2019s future.<\/p>\n
The mining magnate boosted her holdings on Wednesday to just below the 20 per cent takeover threshold, saying she wants a prominent influence over Liontown through her company, Hancock Prospecting.<\/p>\n
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Gina Rinehart has built a stake in Liontown.<\/span>Credit: <\/span>Trevor Collens<\/cite><\/p>\n Rinehart\u2019s aggressive share-buying spree was heralded with an initial 7.72 per cent stake last month and successive incremental raids have boosted her holding to be greater than Liontown chair Tim Goyder\u2019s.<\/p>\n Hancock\u2019s sizeable presence and the company\u2019s talk of contributing to Liontown\u2019s future and seeking a position on the board will become a critical factor for US chemical giant Albemarle\u2019s intended takeover of the miner and its lucrative high-quality hard-rock lithium deposit in Kathleen Valley, in the middle of Western Australia.<\/p>\n Albermarle is deep into due diligence \u2013 running a ruler over the miner\u2019s books \u2013 and is expected to finalise the process within days before a vote on its takeover offer, which values Liontown at $6.6 billion.<\/p>\n Hancock has spent nearly $1 billion to gain a blocking position.<\/p>\n After its initial raid, Hancock said it would use its mining expertise to support Kathleen Valley\u2019s development and subsequent operations, while exploring opportunities for downstream value adding of the mine\u2019s output in Western Australia.<\/p>\n On Wednesday, the company said in a statement: \u201cHancock now looks forward to having a prominent influence on Liontown\u2019s future, as its largest shareholder.\u201d<\/p>\n Liontown would not comment on Hancock\u2019s activities.<\/p>\n Rinehart\u2019s gatecrashing of Albemarle\u2019s takeover party is part of a global race to control lithium, a key component in modern home and grid batteries used to store the renewable energy generated from wind and solar or to power electric cars.<\/p>\n Vehicle manufacturers across China, Europe and the US are scrambling to secure supplies as they pivot to making all-electric transport, a shift that is fuelling mining explorers and putting small operators such as Liontown supplying the raw material in the sights of global mining giants.<\/p>\n Albemarle already holds a 4.3 per cent stake in the WA miner through its subsidiary RT Lithium. It agreed to terms around non-disclosure and exclusivity arrangements in mid-September on an exclusive basis, subject to customary fiduciary exceptions.<\/p>\n The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion.<\/i><\/b> Sign up to get it every weekday morning<\/i><\/b>.<\/i><\/b><\/p>\nMost Viewed in Business<\/h2>\n
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